LONDON, June 30 (Reuters Breakingviews) – With the S&P 500 Index hovering near a record high as the quarter ends, it’s only fitting Didi Global’s (DIDI.N) initial public offering should deliver a first-day pop. Its U.S. depositary shares opened on Wednesday up nearly 20% from the $14 IPO price set the day before. That gave the Chinese ride-hailing giant a market capitalisation of around $80 billion read more . Headwinds including an antitrust probe at home – where almost all Didi’s business is done, despite the new “Global” in the name – may explain why much of that gain later slipped away.

The debut still handed a tip to Didi’s U.S. counterpart, the $95 billion Uber Technologies (UBER.N). As part of a wise 2016 decision to stop trying to compete in China, Uber took what’s now a 12% stake in Didi. That was already worth $8 billion at the IPO price. Wednesday’s action added to that.

It’s hard to justify Didi’s current worth using the same valuation multiple investors attribute to Uber’s revenue, even allowing for growth read more . IPO investors will not be complaining, though. A rising stock-market tide lifts all boats.

*By Richard Beales, Reuters*